Young women lured to bankruptcy

11:28 23 June 2009

The lure of looking like the rich and famous is leaving many young women suffering bankruptcy, a report has claimed.

According to the latest figures, the majority of bankrupts under 24 are women, as females go search of the perfect designer handbag, while paying little attention to the price tag.

A survey found that ladies are "far more likely" to spend irresponsibly than males as they are seduced by the image of celebrities such as Paris Hilton or Victoria Beckham.

Analysis of figures from the Insolvency Service by accountancy firm Wilkins Kennedy revealed that bankruptcies among the under-24 age group have risen 10% in the past five years, with women accounting for 55%.

Many women have found themselves trapped in debt from trying to emulate celebrities and display the "trappings of success" which their salaries are unable to sustain, the survey said. The research also found that young women were keener than young males to demonstrate their independence by renting or owning their own home.

"Five years ago it tended to be young men who got out of their financial depth, but now it is far more likely to be young women who spend irresponsibly," said Anthony Cork, Director at Wilkins Kennedy.

Addict advice Top tips to help you stop spending.

"That gap between the genders seems to be growing. Over the last decade, the pressure on young women to follow the lavish lifestyle of female celebrities has grown immensely.

"In all seriousness we are told that Paris Hilton and Victoria Beckham are role models to be followed. The growing availability of credit has meant that for the status-conscious, who want to exhibit the trappings of success, designer clothes and jewellery seem misleadingly achievable."

Kennedy added: "Too many young single women have taken out mortgages that eat up far too much of their monthly salaries. This makes them vulnerable to changes in interest rates and makes them far more likely to go bankrupt if they lose their job".